Deck 13: Personal Selling and Sales Promotion

Question 1

Sandy Bayes works at Hilton Brews as a senior sales executive and manages all the key national accounts his company has.His job involves ensuring that these key customers have no cause for complain and receive the best service from Hilton Brews.Sandy is also responsible for acquiring new customers with large consumption needs on a nation-wide basis.Sandy was hired for this position despite his lack of product specialization in all the product lines because of his excellent interpersonal skills.Sandy's ability to network with customers will help Hilton Brews retain and expand at a national level.From the information provided in the scenario,we can infer that Hilton Brews has adopted a ________.

A)product sales force structure
B)services sales force structure
C)territorial sales force structure
D)market sales force structure
E)geodemographic sales force structure

Answer 1

D

Question 2

Sales people from the inside sales force typically ________.

A)travel to call on customers in the field
B)cannot conduct business on their own
C)work only on the relationship-building process
D)work independently of the outside sales force
E)provide daily access and support

Answer 2

E

Question 3

Easy Life manufactures a wide range of home appliances,healthcare products,and cosmetics.It sells its products to many types of customers but in a single geographic location.Its complex sales force structure combines which of the following two sales force structures?

A)geographic and market
B)product and market
C)product and territorial
D)territorial and market
E)geographic and product

Answer 3

B

Question 4

Which of the following examples represents a territorial sales force structure?

A)Ajax Medicals has special teams of medical representatives who are well-versed in the specific classes of medicines they sell to the customer markets assigned to them.
B)Apollo Pharmaceuticals sells its products through a network of teams, each of which handles a specific product, but sells them in one location only.
C)Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices.
D)Milton's is a specialty liquor brewery that markets its products to the most exquisite hotels and has individual sales teams assigned to provide priority service to each of its clients.
E)Oriental Meals, producers of pre-cooked Chinese meals, markets its products throughout the country through a network of area and regional sales officers.

Question 5

In which of the following sales force structures is each salesperson assigned to an exclusive geographic area?

A)product sales force structure
B)territorial sales force structure
C)market sales force structure
D)customer sales force structure
E)client sales force structure

Question 6

Which of the following statements is true of salespersons?

A)They do not work with wholesalers and retailers.
B)Click-only companies have maximum number of salespersons.
C)They do not represent the customers to the company.
D)They represent a company to customers by communicating and selling.
E)They represent a new class of professionals who have emerged as part of the steep rise in retailing.

Question 7

Which of the following examples represents a product sales force structure?

A)Venson's produces frozen dinners at its factory in Ohio and sells them across the country through a network of sales representatives organized into regional and territorial tiers.
B)AmWeb produces an expensive brand of herbal cosmetics called "Green You" that are sold in select boutiques and parlors by selling teams assigned to serve small groups of these key customers.
C)Verra Designers operates from its landmark store in uptown New York and customers from world over come to this store to buy original merchandise at steep prices.
D)Cartlon Computers sells its highly specialized computers through special teams which have received training in the configuration, uses, and USPs of a single model of its computers.
E)Nutters, producers of cookies and other bakery products, markets its products throughout the country through a network of area and regional sales officers.

Question 8

Which of the following is an action that is primarily associated with a member of the outside sales force?

A)conducting business exclusively through visits from buyers
B)providing daily access and support
C)conducting business via telemarketing
D)using the Internet to identify and qualify new leads
E)calling on potential and existing customers in the field

Question 9

Which of the following is true of the territorial sales force structure?

A)Travel expenses are relatively smaller than product sales force structure.
B)It is usually adopted if a company has numerous and complex products requiring technically skilled salespersons.
C)Sales force specializes along different product lines in this sales force structure.
D)Sales force is organized along customer or industry lines in this sales force structure.
E)It handles the needs of individual large customers, rather than regular customers.

Question 10

The difference between an inside sales force and an outside sales force is that,an outside sales force ________.

A)makes more decision-maker contacts a day
B)consists of telemarketers and Internet sellers
C)conducts business from their offices
D)represents an approach with lower cost-per-contact
E)travels to call on customers in the field

Question 11

Oolay Inc.,a U.S.based cosmetics manufacturer,sells its products in France,China,Russia,and India.To manage its sales,it has appointed a number of sales representatives for each location who report to area managers.These area managers coordinate sales for their respective areas and report to regional managers.From the information provided in the scenario,we can infer that Oolay Inc.has adopted a ________.

A)customer sales force structure
B)product sales force structure
C)client sales force structure
D)market sales force structure
E)territorial sales force structure

Question 12

Which of the following is a disadvantage of the territorial sales force structure?

A)It does not lead to building local customer relationships.
B)Salesperson's job and accountability are not clearly defined.
C)It does not involve geographic specialization.
D)Travel expenses are relatively larger than any other sales force structure.
E)It is not useful in a company with a number of product lines in different industries.

Question 13

Which of the following is an advantage of market sales force structure?

A)highest degree of product specialization
B)close relationships with important customers
C)lowest travel expenses
D)minimal need for supervision of salespeople
E)lowest compensation rates for salespeople

Question 14

Which of the following is an advantage of an outside sales force?

A)It essentially provides daily access and support.
B)It is less expensive than the inside sales force.
C)It is the most effective way to provide technical sales support to buyers.
D)It can make more decision-maker contacts a day as compared to the inside sales force.
E)It provides face-to-face collaboration and relationship building.

Question 15

In which of the following structures does a company organize its sales force along customer or industry lines?

A)geodemographic sales force structure
B)services sales force structure
C)market sales force structure
D)territorial sales force structure
E)product sales force structure

Question 16

A ________ sales force structure combines several types of sales force organizations.

A)market
B)simple
C)product
D)territorial
E)complex

Question 17

Lemony Inc.sells bottled lemon juices,its single and popular product across various geographic locations through tie-ups and agreements with retailers.The sales teams are primarily responsible for locating new retailers and contracting with them to increase the reach of the company's product.The complex sales force structure at Lemony Inc.combines which of the following two sales force structures?

A)customer and product
B)geographic and product
C)product and territorial
D)product and market
E)territorial and market

Question 18

P&B Ltd.provides consumers with a range of household,engineering,and healthcare goods; it also runs hotels and resorts under its brand name.It employs different sales forces within the different product and service divisions of its major businesses.From the information provided in the scenario,we can infer that P&B Ltd.has adopted a ________.

A)market sales force structure
B)product sales force structure
C)customer sales force structure
D)territorial sales force structure
E)geographical sales force structure

Question 19

If a company assigns individual teams of salespeople to big retail customers,it is most likely to have a ________ sales force structure.

A)geographical
B)product
C)market
D)territorial
E)demographic

Question 20

Which of the following statements is true of the product sales force structure?

A)The product sales force structure is characterized by specialization along product lines.
B)The product sales force structure is used when a company has only one product line.
C)Every salesperson is trained to be an expert in all the product categories of the company.
D)The sales force is organized along customer or industry lines in this sales structure.
E)The product sales force structure is restricted in application as it cannot be used by companies providing services.

Question 21

Salespeople write up their completed activities in the ________.

A)technical support reports
B)expense reports
C)investment returns reports
D)call reports
E)customer surveys

Question 22

Sheldon Parks works as a salesperson in a large company selling vending machines and beverages like coffee,tea,and hot chocolate.He recently met Rosa Thoms,a potential client who heads the administration department of a large MNC,and spoke to her at length to determine what kind of vending machine and beverages the company would need.Depending on the client's specifications,he provided a small team of employees with samples and obtained their feedback.Which of the following steps of the sales process is Sheldon executing in this scenario?

A)approach
B)preapproach
C)qualifying
D)prospecting
E)closing

Question 23

Asking for the order and offering to help write up the order are examples of the ________ techniques.

A)preapproach
B)qualifying
C)closing
D)prospecting
E)approach

Question 24

Which of the following is the last step in the selling process?

A)follow-up
B)closing
C)handling objections
D)presentation
E)prospecting

Question 25

________ is the sales step in which a salesperson learns as much as possible about a prospective customer before making a sales call.

A)Approach
B)Follow-up
C)Demonstration
D)Price quotation
E)Preapproach

Question 26

Which of the following statements is true of team selling?

A)It is adopted when the group of target customers is small and homogeneous.
B)It includes experts from many areas like marketing, operations, finance, and others.
C)It is usually adopted when the company has only one product line.
D)Each salesperson is an expert in every area and can handle all of a large customer's needs autonomously.
E)It is easier to evaluate individual contribution and compensation in case of team selling when compared to other sales forces.

Question 27

Which of the following is the fixed amount in a salesperson's compensation?

A)bonus
B)commission
C)salary
D)incentives
E)profit sharing plan

Question 28

Sales reports primarily contain ________.

A)details of sales contests and the incentives they carry
B)schedules for sales meetings
C)details of the expenses and overheads incurred
D)weekly or monthly work plans
E)call plans developed by supervisors for salespeople

Question 29

Which of the following is a supervision tool used by managers for their salespeople?

A)call plan
B)sales quota
C)sales contest
D)bonus plan
E)straight commission plan

Question 30

________ is/are standards stating the amount salespersons should sell and how sales should be divided among the company's products.

A)Sales promotion
B)Sales quota
C)Display allowances
D)Time-and-duty analysis
E)Sales reports

Question 31

In which of the following steps in the sales process does the salesperson meet the customer for the first time?

A)prospecting
B)preapproach
C)presentation
D)qualifying
E)approach

Question 32

Carmalax is the country's largest vendor of printers and digital imaging services.Carmalax is known for its highly-trained and experienced sales force which has provided the company with exemplary service for decades.Much of the success Carmalax enjoys has been attributed to the fact that the management of Carmalax treats its sales division with respect and recognition.Which of the following statements,if true,would reflect this positive approach to managing the sales force that is practised by Carmalax?

A)The salespeople at Carmalax are encouraged to focus on the transaction-oriented selling process, rather than the value selling approach.
B)The salespeople at Carmalax work under extreme supervision and managers are aware of the activities of their salespeople on field at all times.
C)The salespeople at Carmalax typically face the threat of many punitive measures, including unemployment, for poor performance.
D)The salespeople at Carmalax are invited to frequent sales meetings to voice their concerns and rewarded well for individual and group performance.
E)The salespeople at Carmalax are encouraged to use trade and business promotions, rather than customer promotions.

Question 33

ABM Connect is one of the largest providers of Internet services in the country.The company operates through a network of thousands of employees who manage its functions in their respective capacities.With the entry of new service providers in the industry,ABM Connect has also enhanced its sales and marketing efforts to retain its position as the market leader.Which of the following statements,if true,would indicate that ABM Connect adopts the value selling approach?

A)ABM Connect recently started offering premium services to its customers in select cities.
B)ABM Connect recently reduced its customer promotions expenditure by half to reduce costs.
C)ABM Connect typically follows the workload approach to determine the size of its requisite sales force by calculating the number of key accounts they have and the number of sales calls they have to make.
D)ABM Connect typically follows a sales strategy that shows customers that the price they are paying actually translates into speedy and reliable Internet services.
E)ABM Connect typically measures its salespeople by the sole criteria of number of deals closed in a given time period.

Question 34

Howard Genks works as a sales representative in a company that produces all kinds of hospital supplies.Recently,a prospective buyer walked into the store and spoke of how he was starting a non-profit organization to provide free treatment to children with cancer and required all furnishings for the ward to be designed specially for children.Howard quickly showed the client the range of beds and other hospital requirements the store had which were designed specifically for children to use.They also had rounded edges and colors that would appeal to children.Which of the following steps of the sales process is Howard executing in this scenario?

A)preapproach
B)handling objections
C)following up and cold calling
D)prospecting and qualifying
E)presentation and demonstration

Question 35

Time-and-duty analysis is a ________ tool used by managers for their salespeople.

A)motivation
B)prospecting
C)qualifying
D)segmentation
E)supervision

Question 36

________ is the sales step in which a salesperson or company identifies qualified potential customers.

A)Demonstration
B)Preapproach
C)Prospecting
D)Approach
E)Presentation

Question 37

Which of the following is the first step in the selling process?

A)preapproach
B)prospecting and qualifying
C)determining call objectives
D)handling objections
E)presentation and demonstration

Question 38

________ is the sales step in which the salesperson seeks out,clarifies,and overcomes any customer disapproval to buying.

A)Handling objections
B)Closing
C)Follow-up
D)Prospecting and qualifying
E)Preapproach

Question 39

Which of the following is true of the stage of presentation in the selling process?

A)It involves the act of cold calling in the absence of potential leads.
B)It involves the final meeting with the customer to close the deal.
C)It involves learning as much as possible about the organization and its buyers prior to the approach stage.
D)It shows how the company's offer solves the customer's problem.
E)It involves clarifying customer objections to buying with a positive approach.

Question 40

The difference between preapproach and approach is that,approach involves ________.

A)meeting the buyer and getting the relationship off to a good start
B)learning as much as possible about the organization and its buyers
C)determining call objectives
D)consulting standard industry and online sources to qualify a lead
E)identifying potential leads

Question 41

Freaky Lays,a leading bottled juice manufacturer,introduces a new range of potato chips.To promote this new product,it offers a packet of chips free with every bottle of Freaky Lays juice.Though very expensive,it is the most effective method of promotion.Which of the following promotional tools has Freaky Lays used here?

A)rebates
B)samples
C)coupons
D)premiums
E)price packs

Question 42

AirNetwork,a telecommunication company,sponsors a rock concert by a famous band.This is an example of ________.

A)event marketing
B)premiums
C)point-of-purchase promotions
D)cent-off deals
E)price packs

Question 43

________ are offers of a trial amount of a product.

A)Cash refunds
B)Price packs
C)Rebates
D)Coupons
E)Samples

Question 44

Vintage is one of the largest companies in the country.Vintage produces a vast range of goods which includes cars,cameras,home appliances,personal-care products,and food items.The company also competes vigorously in the services market as it runs hotels,hospitals,and schools.Vintage entered the real-estate industry in the last decade and proved to be successful in this field too.Which of the following would classify as a business promotion tool used by Vintage?

A)a free "well-woman" check up at Vintage clinics for any recent customer who purchased merchandise above $200 at Vintage retail stores
B)a trade show depicting the new villas and condominiums that are being developed under the Well Homes project
C)a sweepstakes program inviting customers to submit their names and gain a chance to win the new Vintage car, VTG 412
D)a toaster being sold at half its list price for any consumer who buys a Vintage oven or food processor
E)a display allowance for those retailers who feature the manufacturer's product

Question 45

La Viva,a chain of clubs and resorts,is known to be one of most preferred options for consumers seeking hospitality of a good standard.La Viva follows a mission which stresses long-term relationship building.It does not offer customers frequent price discounts which do increase footfalls,but fail to add value to the company.Which of the following statements,if true,strengthens the argument that La Viva uses the relationship-building approach over the transaction-oriented approach?

A)The sales force at La Viva is trained rigorously in the selling process that begins with the step of prospecting and terminates with the step of follow-through.
B)The consumer promotion activities at La Viva are centered around providing customers with a free package during the off-season.
C)The largest proportion of customers coming to La Viva are holders of a "Lifetime with La Viva" card or have been referred by satisfied customers.
D)The facilities for recreation at La Viva are not significantly greater than its key competitor, Aurora clubs and resorts.
E)The managers at La Viva are suffering from a situation that reflects promotion clutter.

Question 46

Which of the following statements is true of consumer promotions?

A)It persuades resellers to carry a brand.
B)It includes a wide range of tools like samples, coupons, refunds, and so on.
C)Display allowances are a type of consumer promotion tool.
D)It is primarily used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.
E)Conventions and trade shows are a part of consumer promotions.

Question 47

"Buy one,get one free" is an example of ________.

A)price packs
B)coupons
C)rebates
D)advertising specialties
E)samples

Question 48

Which of the following is a promotional tool used for trade promotions?

A)coupons and premiums
B)sales contests
C)conventions and trade shows
D)rebates and cent-off deals
E)straight discounts off the list price

Question 49

Koffee,a brand of instant coffee,offers a free coffee mug with its logo imprinted on it with the purchase of every packet of its instant coffee powder.Which of the following promotional tools has Koffee used here?

A)coupons
B)price pack
C)samples
D)advertising specialities
E)rebates

Question 50

________ are certificates that save buyers money while they purchase specified products.

A)Price packs
B)Samples
C)Coupons
D)Rebates
E)Premiums

Question 51

Sales promotion tools used to persuade resellers to carry a brand,give it shelf space,promote it in advertising,and push it to consumers are collectively called ________ promotion.

A)consumer
B)point-of-purchase
C)sales force
D)trade
E)business

Question 52

In which of the following promotional tools does the customer send proof of purchase to the manufacturer,which then refunds a part of the purchase price by mail?

A)rebates
B)coupons
C)samples
D)premiums
E)price packs

Question 53

________ are sales promotion tools used to generate new leads,stimulate purchases,reward customers,and motivate salespeople.

A)Business promotions
B)B2B promotions
C)Trade promotions
D)Point-of-purchase promotions
E)Event sponsorships

Question 54

Wafers,a potato chips manufacturer,offers a free toy figure inside every packet of the potato chips.This is an example of which of the following promotional tools?

A)rebates
B)coupons
C)price pack
D)samples
E)premiums

Question 55

Which of the following is true of trade promotions?

A)It boosts short-term customer buying and long-term customer relationships.
B)Conventions and trade shows are the two main types of trade promotions.
C)It generates business leads which do not require the qualification process.
D)It includes samples, premiums, and coupons.
E)It aims to persuade resellers to carry a brand.

Question 56

Vintage is one of the largest companies in the country.Vintage produces a vast range of goods which includes cars,cameras,home appliances,personal-care products,and food items.The company also competes vigorously in the services market as it runs hotels,hospitals,and schools.Vintage entered the real-estate industry in the last decade and proved to be successful in this field too.Which of the following would classify as a trade promotion tool used by Vintage?

A)free samples of a new line of frozen dinners called Vintage Meals
B)twin packs of shampoo and conditioner sold through bundle pricing
C)calendars for the new year being given free with Christmas decoration packages
D)off-invoice offers for a new product being sold for the first three months
E)a lucky draw contest whose winner will receive a coupon entitling him or her to a free stay at any one of their resorts

Question 57

ABM Connect is one of the largest providers of Internet services in the country.The company operates through a network of thousands of employees who manage its functions in their respective capacities.With the entry of new service providers in the industry,ABM Connect has also enhanced its sales and marketing efforts to retain its position as the market leader.Which of the following statements,if true,would indicate that ABM Connect adopts the transaction-oriented approach?

A)The salespeople at ABM Connect receive special training in the area of customer relationship-building strategies.
B)The salespeople at ABM Connect have been cutting prices drastically to meet targets after the entry of many competing firms in the market.
C)The salespeople at ABM Connect have been demonstrating the value that their speedy Internet services can bring to business customers even when their competitors are slashing prices.
D)The salespeople at ABM Connect have recently been promoting the "Connect for Life" program which gives its long-time consumers added benefits at no extra costs.
E)The salespeople at ABM Connect typically use business promotions, rather than trade or consumer promotion measures.

Question 58

Conventions,trade shows,and sales contests are types of ________.

A)point-of-purchase promotions
B)frequency marketing programs
C)advertising specialties
D)business promotions
E)premiums

Question 59

Cream Bay has come out with a new range of ice creams.To promote its new products,it has set up kiosks outside malls which offer free samples of the ice cream to the potential customers.Which of the following promotional tools has Cream Bay adopted?

A)post-purchase cash refunds and rebates
B)price packs
C)point-of-purchase promotions
D)coupons
E)price discounts

Question 60

Sales promotions targeted at ________ are called trade promotions.

A)producers and manufacturers
B)members of the sales force
C)business customers
D)final buyers
E)retailers and wholesalers

Question 61

If a company sells only one product line to one industry with customers in many locations,it would use a territorial sales force structure.

Question 62

Sales promotions targeted toward retailers and wholesalers are called business promotions.

Question 63

Inside salespeople conduct business from their offices via telephone,the Internet,or visits from buyers.

Question 64

Commissions and bonuses are the variable amounts of compensation.

Question 65

Preapproach is the sales step in which the salesperson meets the customer for the first time.

Question 66

Sales promotions should help in creating short-term sales rather than building long-term customer relationships.

Question 67

Salespeople turn in sales reports for which they are partly or wholly reimbursed.

Question 68

Salespersons are typically order takers who are not allowed to engage in creative selling or relationship marketing.

Question 69

Click-only companies have the largest number of salespeople.

Question 70

Sales promotions targeted toward final buyers are called consumer promotions.

Question 71

Preapproach is the first step in the selling process.

Question 72

Sales promotion measures do not incorporate the element of time as they only encourage consumers to buy the product.

Question 73

The primary objective of trade promotions is to motivate salespeople.

Question 74

Sales quota is a type of motivation technique.

Question 75

One manner in which manufacturers gain more shelf space for their products is through allowances given to retailers.

Question 76

Closing is the sales step in which a salesperson asks the customer for an order.

Question 77

The last step in the selling process is closing.

Question 78

When a company sells a wide variety of products to many types of customers located in one geographic area,it often employs a territorial sales force structure.

Question 79

Samples are offers of a trial amount of a product.

Question 80

Travel expenses are relatively smaller in territorial sales force structure as compared to other sales force structures.